The Reserve Bank of India has announced a third amendment to the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) for small finance banks, impacting their liquidity management.
RBI Amends CRR and SLR for Small Finance Banks
On June 19, 2026, the Reserve Bank of India (RBI) issued the third amendment to the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) for small finance banks. This amendment aims to refine liquidity management practices following a review of earlier directives.
Key updates relate to the handling of fresh Non-Resident (External) Rupee (NRE) term deposits, which are crucial for these banks’ liquidity positions.
Such adjustments are important for the financial soundness of small finance banks and their capacity to respond effectively to deposit and lending requirements.
Banking lawyers should ensure that their clients in small finance banks are informed of these amendments to safeguard compliance and enhance operational strategies.
Citations
- RBI Amendments (2026) RBI/2026-27/146
